Mr. Riley Taggart reports

CLEANTEK INDUSTRIES REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS WITH RECORD REVENUE

Cleantek Industries Inc. has released its financial results for the three and six months ended June 30, 2026. All amounts are in thousands of Canadian dollars, except per-share amounts.

The company reported its highest quarterly revenue of $5,126, an increase of 53 per cent over the second quarter of 2025, and returned to profitability with net income of $518, compared with a net loss of $456 in the prior-year quarter. The strong performance reflects the growing contribution of the company's international expansion under the Halo international program and the continued strength of its core operations.

Q2 2026 highlights:

• Record quarterly revenue of $5,126, an increase of 53 per cent from $3,352 in the second quarter of 2025;
• Equipment sales of $2,205, up from $668, driven by deliveries under the Halo international program;
• Rental and service revenue of $2,921, an increase of 9 per cent over the prior-year quarter;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $1,426, compared with $779 in the prior-year quarter, prior to any adjustment for accrued bonus compensation;
• Net income of $518, or two cents per share (basic and diluted), compared with a net loss of $456;
• Delivered 20 Halo SE crown mount lighting systems under the Halo international program, the largest single contract in the company's history;
• Completed the company's first commercial sale into the South American market;
• Strengthened the balance sheet to a working capital surplus of $3,115 at June 30, 2026, compared with a deficit of $482 at Dec. 31, 2025.

"Our second quarter results reflect the strength of Cleantek's business and our ability to execute on our growth strategy," said Riley Taggart, chief executive officer of Cleantek Industries. "Record revenue, a return to profitability and the successful delivery of our largest contract to date demonstrate the growing demand for our technologies. With continued international expansion and a strong pipeline of opportunities, we are well positioned to build on this momentum through the balance of 2026."

Second quarter review

Total revenue for the second quarter of 2026 was $5,126, an increase of $1,774, or 53 per cent, compared with $3,352 in the second quarter of 2025. For the six months ended June 30, 2026, total revenue was $8,640, an increase of $1,583, or 22 per cent, compared with $7,057 in the corresponding period of 2025. The increase in both periods was primarily attributable to higher equipment sales under the Halo international program, while rental and service revenue also increased 9 per cent to $2,921 despite typical seasonal softness in Western Canada.

Gross profit for the quarter was $2,615 (2025: $1,782), representing 51 per cent of revenue (2025: 53 per cent). The decrease in gross profit percentage reflects a shift in revenue mix toward equipment sales, which carry lower margins than rental revenue. Adjusted EBITDA was $1,426 (2025: $779), and net income was $518 (2025: net loss of $456). For the six months ended June 30, 2026, adjusted EBITDA was $2,427 (2025: $2,045) and net income was $735 (2025: net loss of $7).

During the quarter, the company delivered 20 Halo SE crown mount lighting systems to an international customer in the Middle East under the Halo international program, representing its largest single contract to date, and completed its first commercial sale into the South American market. Effective June 30, 2026, the company amended its distribution arrangement for the program such that its regional distributor assumed responsibility for local execution and installation, together with the associated performance guarantee, while the company supplies units on a delivered basis and retains responsibility for product design, manufacturing, warranty and technical support.

At June 30, 2026, the company had a working capital surplus of $3,115, compared with a working capital deficit of $482 at Dec. 31, 2025. The improvement reflects investment in inventory and materials to support international deliveries, together with a reduction in the bank operating line. Cash used in operating activities was $271 for the six-month period, reflecting the working capital build to finance contract deliveries.

Outlook

Cleantek enters the second half of 2026 with strong momentum as it continues to execute on the Halo international program, under which 20 of up to 60 contracted units had been delivered as at June 30, 2026. Based on current production and delivery scheduling, the company is optimistic that the balance of the contracted units will be delivered before year-end 2026.

While the Halo international program operates in a region subject to continuing geopolitical developments, the program has experienced minimal disruption to date. Cleantek remains focused on expanding its international presence, growing its recurring rental and service business, and executing strategic initiatives that support long-term shareholder value.

About Cleantek Industries Inc.

Cleantek Industries is a Canadian technology company providing equipment rental, field services and proprietary industrial technology solutions to the oil and gas and construction industries across North America and international markets. The company's Halo lighting systems and EcoSteam waste water and heating solutions help improve operational efficiency and reduce operating costs across industrial operations. Cleantek's common shares trade on the TSX Venture Exchange under the symbol CTEK.

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